The Reserve Bank of India (RBI) has disclosed the minutes of the previous technical advisory committee (TAC) meeting that was held on 18 January.

According to the disclosed information, Governor Duvvuri Subbarao struggled to to convince members to keep the rate unchanged. Subbarao had reduced the cash reserve ratio (CRR) by 50 basis points in the policy announced on 24 January but he did not change the key interest rates.

Many experts believe that the central bank should be more concerned over the slower growth rates in the economy than high inflation rates. Subbarao wants to hold the rates because he believes that there are no signs of fiscal consolidation in the economy.

The minutes showed that an advisory body, which includes internal and external members, gave advice to the governor on monetary policy. Most of the external members recommended reducing the interest rates by the central bank.

Three external members of the advisory body suggested reducing the repo rate by 25 basis points, another member said that it should be reduced by 50 basis points. Two others said CRR should not be cut with the monetary policy.

The minutes of the meeting shows that there are concerns over the economic slowdown in the economy but the central bank is divided over what actins it should take to address the problem.